what is annualized net receivable?

Question

this is a financial term used to measure loan ratios

Answer 1

Unfortunately, many financial terms can mean different things to different companies and or industries. So, it's best to break-down the term your talking about. A net receivable is a payment or stream of payments that is due to you or a business. The term "net" in front of receivable denotes that it is "net" or less other costs/expenses - in other words it's a bottom line number instead of a "gross" receivable. Finally, annualized just means that the total year's worth of the receivable has been broken down into monthly payments or, the monthly payments has been increased (by 12 if it's monthly, but there are many ways to annualize numbers) to represent the years worth of the receivable. Hope this helps.